Summerset targets Auckland elderly with new Hobsonville village

Tuesday 3rd April 2012

Summerset Group, the retirement village operator and developer that listed in November, is looking to target Auckland’s ageing population and has bought property on the city’s northern fringe for a new village.

The company bought 7.6 hectares in Auckland’s Hobsonville for an undisclosed sum as it looks to expand in the country’s biggest city, it said in a statement. The deal needs Overseas Investment Office approval because Australian investors still own 56 percent of the group.

Details of the village will be released once resource consent is completed.

“In addition to the already ageing population, Auckland’s population is growing faster than any other region in the country,” chief executive Norah Barlow said. “This purchase is another step towards reaching our target of delivering 250 units per annum within five years.”

Summerset’s underlying annual earnings of $8.1 million beat the forecast in its initial public offering prospectus, and delivered 122 units, more than expected.

The company expects its Monterey Park village will cash in from Auckland Council’s North West transformation project which will bring new amenities, such as public transport links to the rest of the city.

Summerset will develop the village over five to seven years, and will offer the full range of services including independent villas and apartments, a village centre with recreation facilities, and a care centre with rest home and hospital level care.

It opened two villages last year in Nelson and Hamilton, and is still developing sites in Warkworth and Hastings. It has also completed work at its Manukau site, which will be Summerset’s biggest investment.

The shares rose 0.7 percent to $1.52 in trading yesterday, and have climbed 8.6 percent from the IPO price of $1.40 in November.

BusinessDesk.co.nz

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